Will UL Solutions’ (ULS) Saudi Partnership Shift Its Competitive Position in Global Safety Certification?

• UL Solutions and GCC Technical Services Company (TS Co.) recently enhanced their partnership to enable locally delivered fire safety testing and certification services in Dammam, Saudi Arabia, under the UL Witness Test Data Program.
• This collaboration directly supports the Gulf region’s accelerating demand for world-class safety standards as large-scale projects under Saudi Arabia’s Vision 2030 unfold.
• We'll explore how UL Solutions' strengthened regional certification capabilities could influence its long-term growth prospects and industry positioning.

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UL Solutions Investment Narrative Recap

To be a shareholder in UL Solutions, you need confidence in the enduring global demand for testing, inspection, and certification, especially as safety standards tighten in fast-growing markets. The expanded partnership in Saudi Arabia, which brings local fire safety certifications to the Gulf region, supports the company's ambition to capture these growth opportunities. However, this makes the short-term catalyst, the company’s ability to expand high-value services in emerging geographies, more visible, while macroeconomic uncertainty remains the principal risk and is unlikely to be materially affected by this single deal.

One relevant company announcement is the August 2025 construction launch of the new Global Fire Science Center in Illinois. This project, coupled with the Saudi partnership, signals a focused push to address fire safety on a global scale, targeting both matured and rapidly developing markets. As UL Solutions broadens these services, execution risk from expansion and fluctuating project timelines becomes a focal point for those tracking near-term progress.

Yet, despite impressive global expansion, investors should be aware that macroeconomic pressure and shifting manufacturer priorities could still pose a risk to short-term revenue stability, especially if...

Read the full narrative on UL Solutions (it's free!)

UL Solutions’ outlook anticipates $3.5 billion in revenue and $477.8 million in earnings by 2028. This is based on a 6.1% annual revenue growth rate and a $150.8 million increase in earnings from the current $327.0 million.

Uncover how UL Solutions' forecasts yield a $71.27 fair value, a 10% downside to its current price.

Exploring Other Perspectives

The Simply Wall St Community's fair value estimates for UL Solutions range from US$68.88 to US$71.27 based on two perspectives. While some see stable demand for product testing as a catalyst, macroeconomic headwinds could still impact company earnings, so consider multiple viewpoints before you decide.

Explore 2 other fair value estimates on UL Solutions - why the stock might be worth 13% less than the current price!

Build Your Own UL Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your UL Solutions research is our analysis highlighting 2 key rewards that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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